The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, introduces transformative measures for India’s real estate and infrastructure sectors. A major highlight is the substantial expansion of the Pradhan Mantri Awas Yojana (PMAY), with an ambitious investment of Rs 10 lakh crore over the next five years. This includes a central assistance allocation of Rs 2.2 lakh crore, aiming to address the housing needs of an additional one crore urban poor and middle-class families. PMAY has already facilitated 4.21 crore housing completions since its inception, and the latest expansion targets three crore more houses, including two crore for rural areas under PMAY (Grameen), driving significant growth in affordable housing and urban development.
Additionally, the government will provide ₹1.5 lakh crore in interest-free loans for infrastructure development across states over the next five years, boosting fiscal support and private sector participation through viability gap funding. This initiative, part of a broader capital expenditure plan of ₹11,11,111 crore (3.4% of GDP), aims to strengthen infrastructure and support sustainable economic growth. Special provisions for Andhra Pradesh include a Rs 15,000 crore allocation for developing Amravati, enhancing infrastructure within the Vizag-Chennai and Hyderabad-Warangal industrial corridors, and completing the Polavaram irrigation project, all of which are expected to stabilize real estate values and attract investments, addressing regional infrastructure deficits and fostering economic growth.
Opinions from Industry Experts
Mr. Shrinivas Rao, FRICS, CEO, Vestian
“Announcements under the Union Budget 2024-25 are a step towards achieving the goal of Vikshit Bharat by 2047. The budget continued its focus on infrastructure development and provided impetus to employment generation with an aim to bridge the skill gap and boost the Indian economy. The budget witnessed several announcements which may boost demand for real estate assets – A budget allocation of INR 10 lakh crore to develop one crore urban houses under PMAY, improved transparency in rental housing markets, digitization of land records, and reduction in stamp duty. Additionally, sustainability gained momentum through the government’s push for clean energy, which may also be reflected in the real estate sector. All in all, the focus on infrastructure development will directly or indirectly have a positive impact on the real estate sector too.”
Mr. Badal Yagnik, Chief Executive Officer, Colliers India
“The Union Budget 2024-25 clearly defines the nine priority areas revolving around employment & upskilling, inclusive growth, augmentation in manufacturing, urban development, infrastructure growth, innovation and newer reforms. This lays the foundation for future budgets and envisions India’s growth trajectory over the next five years. The capital outlay of over INR 11 lakh crore for infrastructure at 3.4% of GDP will boost equitable real estate growth in Tier I and II cities.
Housing continues to be one of the focus areas in the budgetary announcements. Under the PMAY scheme, INR 10 lakh crore has been allocated for the development of 3 crore additional houses. This will drive construction in the urban and rural areas with cascading effect on allied sectors. PPP financing and VGF for rental housing will help in meeting the housing needs of the poor while reducing the burden of the government through the traditional route. Rationalization of stamp duty across states with an emphasis on women homebuyers will boost home-buyer sentiment across major cities of the country. Furthermore, announcements related to industrial parks & corridors and infrastructure development in temple corridors should provide opportunities for all real estate stakeholders. Additionally, revision in tax slabs and increase in deduction limits under the new tax regime can potentially enhance disposable income and drive-up real estate investment across asset classes especially residential real estate.”
Mr. Sankey Prasad, Chairman & MD, India & CMD – Middle East, Colliers Project Leaders
“In addition to infrastructure development, the Union Budget 2024-25 has focused on employment generation, skilling, manufacturing augmentation, innovation and inclusive growth. On the real estate front, additional allocations under PMAY scheme, rationalization of stamp duty charges for women-home buyers and focus on rental housing catering to industrial workers bodes well for the residential segment. Interestingly, bolstered by government policy support and infrastructure developments, spiritual tourism is poised to be a critical growth driver for the development of several temple towns in India. Announcements related to industrial parks and corridors can potentially add vigor to the industrial & warehousing segment. Moreover, increase in disposable income under the new tax regime through additional deductions and slab revisions can amplify investments across real estate asset classes including REITs.”
Mr. Amit Goyal, Managing Director, India Sotheby’s International Realty
“The budget strikes a delicate balance: prioritizing infrastructure, job creation, and MSMEs while maintaining fiscal discipline. The commitment to reduce the deficit to 4.5% and below over the next few years by FM Nirmala Sitharaman, is commendable. This ensures long-term economic stability, high credit rating and FDI inflows for India. In a young nation with a large youth population (40% under 25!), skilling and job creation are crucial.
For real estate transaction, bringing down the long-term capital gains tax from 20% to 12.5% is a welcome step, even if it comes with removal of indexation benefits. This will encourage more liquidity in property transactions. Higher uniformity in long term capital gains tax across different asset classes was a long standing ask of investors.
The push for digitization, efficient land management, and modernized bylaws is also a boost for urbanisation and real estate. This will improve ease of property transactions and strengthen municipal finances through increased property taxes.”
Mr. Sunil Dewali, Co-CEO of Andromeda Sales & Distribution Pvt Ltd
“The Finance Minister’s announcement to make housing more affordable, with a ₹2.2 lakh crore push under the PM Awas Yojana-Urban, is a major step forward. Addressing the needs of one crore poor and middle-class families with a ₹10 lakh crore investment over five years, it reflects a robust approach to urban development. Encouraging states to reduce high stamp duty rates, especially for women buyers, is progressive. Digitizing land records, GIS mapping, and urban housing initiatives, alongside workforce skilling, will boost the real estate sector. Significant infrastructure investments and simplified FDI rules will drive private investment, fostering economic growth and stability.”
Mr. Divyam Shah, Director of Euro Panel Products Limited
“The government’s continued push on developing and revitalising infrastructure projects will assist the overall construction sector to ensure growth, “The centre’s renewed interest in maintaining its focus on infrastructure development in the Union Budget is a gratifying sight. The construction of several key road connectivity projects, including highways and others, along with a new airport in Bihar and across India aligns with Eurobond’s long-term objectives. Furthermore, the incentivization of job creation in the manufacturing sector will help the sector to generate more jobs for skilled professionals, helping to streamline and increase the efficiency of the manufacturing process, leading to future growth.”
Dr. Payal Kanodia, Chairperson, FICCI YFLO Delhi.
“It is promising to see our vision align with the Modi government’s forward-thinking ideology. As the newly appointed Chairperson of YFLO Delhi, my dedication to women and child welfare has been amplified by this honour. I am committed to reaching 1 million people, focusing on livelihood opportunities, youth skill development, literacy, socio-economic empowerment, environmental conservation, and enterprise development. Modi 3.0’s focus on enhancing women’s workforce participation through initiatives like hostels and women-specific skilling programs is inspiring. At YFLO, in collaboration with Womenovator, we are encouraging private academic institutions to help post-graduate women overcome societal challenges and secure relevant work. Additionally, through M3M Foundation, new initiatives for promoting private investment in post-harvest activities and faster adoption of technologies like nano DAP to boost agricultural productivity will be scaled in Delhi NCR and border areas like Leh and Ladakh, benefiting women in rural areas.”
Mr. Nagaraju Routhu, CEO of Experion Developers (Real Estate)
The future of the real estate industry looks promising according to the 2024 budget. A big step forward is the increased funding for urban infrastructure development, which will make cities more livable overall and raise demand for homes. In addition to encouraging home ownership, the government’s emphasis on affordable housing and the extension of tax incentives under Section 80EEA will give first-time homebuyers much-needed relief. Furthermore, it is a good measure that will increase sales of residential projects and draw in more investment to lower the GST rates for properties that are still under construction. All things considered, this budget represents a promising start for the real estate industry, and we anticipate its successful execution to bring about long-term growth and development.
Mr. Amarjit Singh Bakshi, Chairman and Managing Director, Central Park
“We commend the government for the comprehensive and progressive budget announced today. The measures introduced reflect a clear commitment to fostering economic growth and supporting various sectors, including real estate. The Rs 10 lakh crore investment under the PM Awas Yojna, Urban 2.0, will greatly benefit the urban middle-class and the Rs 2.2 lakh crore push will address the nation’s affordable housing needs.
The allocation of Rs 11.11 lakh crore for infrastructure development, comprising 3.4% of India’s GDP, will definitely drive growth and connectivity, positively impacting the housing market. Government’s focus on maintaining a strong fiscal support for infrastructure projects for the next 5 years will also drive it forward. These budgetary measures are also expected to generate high-value employment and support over 200 ancillary industries, reinforcing the sector’s critical role in the economy.
Overall, we believe this budget sets the stage for a robust and sustainable growth trajectory for the real estate sector, benefiting all stakeholders. We remain committed to utilizing these favourable policies to deliver exceptional value and innovative solutions to our customers.”
Mr. Amit Porwal, Director at Aranyakaa Farms
“The Urban Housing 2.0 initiative of PMAY is highly commendable. It is a clear indication that the government has a strong concern for urban housing issues, based on the allocation of ₹10 lakh crore with ₹2 lakh crore central assistance and subsidized rates. This is a big step towards solving the housing crisis for lower class in urban areas across the country.
Also, setting up digital agriculture infrastructure, annual digital crop surveys and mapping of farmers to their land parcels are progressive steps towards this direction. They will not only enable better credit risk assessment but also increase formal credit penetration in agriculture. A more robust and inclusive economic environment will be created as a result of these measures that will benefit urban as well as rural communities.”
Mr. Deep Vadodaria – CEO of NILA Spaces Limited
“We commend the Honourable Finance Minister, Nirmala Sitharaman, for the robust allocation of ₹2.2 lakh crore towards PM-Awas Yojana Urban 2.0. This significant commitment reflects the government’s dedication to addressing the housing needs of the poor and middle class. The completion of 3 crore houses across rural and urban areas will greatly enhance the ‘Ease of Living’ and dignity for millions of Indians.
The reintroduction of interest subsidies under PMAY-U is a positive step that will support the affordable housing segment, making homeownership more accessible to many. Additionally, the Finance Minister’s encouragement for states to lower stamp duties for women homeowners is a progressive move that will significantly reduce property acquisition costs, fostering greater female participation in property ownership and promoting gender equality in real estate. These initiatives, combined with the ₹1.48 lakh crore outlay dedicated to employment generation, will stimulate the construction industry, create millions of jobs, and ensure inclusive urban development. The planned regulatory framework for rental housing and the creation of dormitory-style rental housing for industrial workers mark the beginnings of a much-needed rental housing market in the country.
The digitization of land records with GIS mapping and the establishment of an IT-based system for property records and tax administration will improve the financial position of urban local bodies, contributing to more efficient urban management.”
Furthermore, the government’s balanced approach, including the raise in both short-term and long-term capital gains, underscores a commitment to fiscal responsibility and sustainable economic growth. At this stage, raising taxes is a prudent move to ensure financial stability and support these ambitious development plans.”
Mr. Monu Ratra, ED and CEO, IIFL Home Finance Limited
“We, at IIFL Home Finance Ltd., appreciate the visionary measures unveiled in the Union Budget 2024-25 today. It’s a very inclusive budget which will enable employment generation, boost the MSME sector, enhance agricultural outputs, and provide the much required flip to the housing industry at large. With initiatives such as doubling the loan limit under the MUDRA scheme to ₹20 lakh from ₹10 lakh, proposing reduction in stamp duty on property purchased by women, and pushing a PMAY (Pradhan Mantri Awas Yojana) outlay of ₹ 2.2 lacs Cr. shall enhance the ability of the first time home buyer with increased income and cheaper credit.
The commitment to construct additional 3 crore houses under the PMAY 2.0, spanning across rural and urban sectors, is a game-changing initiative that will catalyze growth throughout the housing finance ecosystem. These budgetary allocations, especially the emphasis on green housing and solar integration, underscore the government’s unwavering dedication to ‘Housing for All’. With our recent past expansion within the tier 2,3 and 4 towns augurs very well with the key announcements made by the honourable finance minister. As a leading affordable housing finance provider, we are poised to leverage this opportunity. With cutting-edge technology at our disposal, IIFL Home Finance Ltd. is steadfast in our commitment to translating these initiatives into tangible realities. We are dedicated to ensuring financial inclusion and enabling first time home buyers of the country.”
Mr. Shalabh Chaturvedi, Managing Director, CASE Construction Equipment – India & SAARC region
“The Finance Minister’s announcement of INR 2.66 lakh crore for rural development, including rural infrastructure, in the Union Budget 2024-25 is a significant investment that aligns with our mission to support and enhance India’s rural infrastructure. Starting from the introduction of the Jan Samarth-based Kisan Credit Card, and the support for Andhra Pradesh, Bihar, and other key regions, the government’s holistic approach to infrastructure, skilling, and rural development are vital initiatives. Additionally, the focus on employment and skills with an allocation of INR 2 lakh crore is encouraging. The various schemes for employment-linked incentives and skilling programs will create a skilled workforce ready to meet the demands of modern infrastructure projects. This budget reflects a balanced approach to developing infrastructure while empowering the workforce, and we are excited to be a part of this transformative journey. Initiatives such as providing one month’s wage for first-time employees, creating job opportunities for 30 lakh youths in manufacturing, and supporting skilling programs for 20 lakh individuals are a great way of boosting productivity, enhancing infrastructure and employment opportunities across the country.”
Mr. Puneet Vidyarthi, Head of Marketing & Business Development – India & Saarc, Case Construction Equipment & President, Rural Marketing Association of India
“The 2024-2025 Indian Budget places a strong emphasis on rural development, reflecting our commitment to improving the lives of India’s rural population. With the launch of Phase IV of Pradhan Mantri Gram Sadak Yojana, it is good to see provisions made for all-weather connectivity to 25,000 rural habitations, ensuring better access and integration for the rural communities. The Pradhan Mantri Janjatiya Unnat Gram Abhiyan aims to uplift 63,000 villages, directly benefitting 5 crore tribal people by enhancing their socio-economic conditions. These initiatives are integral for inclusive growth and more equitable development across India’s vast rural landscape.”
Mr. Sandeep Runwal, Managing Director, Runwal
“We welcome the government’s visionary Budget aimed at transforming the real estate industry and promoting equitable urban development. This Budget sets the stage for inclusive growth through the PMAY initiative, which plans to build 3 crore homes in rural and urban areas and create rental housing support for industrial workers. The government’s commitment to economically disadvantaged urban residents and the middle class is evident in the substantial investment of Rs 10 lakh crore in urban housing under PMAY – Urban 2.0. The proposed stamp-duty reduction, including lower rates for female buyers and the digitization of property data, will enhance accessibility and attract potential buyers.
These initiatives address current housing needs while providing a foundation for long-term urban expansion and community development. By embracing technology, such as integrated platforms for transparent property transactions and efficient urban planning, we ensure that every step toward redevelopment and affordable housing leads to a brighter future. Overall, we believe the Budget will drive robust growth in the Indian real estate sector.”
Mr. Shashank Paranjape (Managing Director, Paranjape Schemes Construction (Ltd )
“If the proposed measures such as reduction in stamp duty for first time homebuyers and women buyers are implemented then it will provide a much-needed boost to the real estate market”.
Mr. Sunil Sisodiya, Founder, Geetanjali Homestate
“The Budget 2024’s allocation of Rs 10 lakh crore under the PM Awas Yojana-Urban is a monumental step for the residential real estate sector. This substantial investment not only underscores the government’s commitment to providing affordable housing but also promises to rejuvenate the urban real estate market. By addressing the housing needs of 1 crore urban dwellers, we are poised to witness a significant boost in demand for residential properties, which will, in turn, stimulate economic growth and job creation across related sectors. Additionally, the revision in the personal income tax regime, encouraging states to lower stamp duty, and the proposal to reduce stamp duty for women purchasing property further enhance affordability and accessibility.”
Mr. Nirmalya Chatterjee, Country VP, Nemetschek Group – Indian Subcontinent
The Union Budget 2024-25’s allocation of over 11 lakh crore for capital expenditure, representing 3.4% of GDP, marks a significant commitment to infrastructure development. This focus on improving connectivity and urban infrastructure is a boon for the Indian market and aligns with our vision at Nemetschek Group. The emphasis on employment, upskilling, and inclusive growth, coupled with initiatives like industrial parks and critical mineral recycling, sets a robust foundation for India’s growth trajectory. We applaud the government’s foresight in promoting innovation and newer reforms, which are crucial for sustainable development. Additionally, the centrally sponsored scheme to skill 20 lakh youth over the next five years will play a pivotal role in preparing the workforce for future challenges, which is in sync with skill development. Nemetschek Group in India is committed to supporting the government in every way to upskill the youth of the country, focusing on the AEC industry. This comprehensive approach not only addresses current needs but also paves the way for a resilient and forward-looking economy.
Mr. Vishal Raheja, Founder & MD of InvestoXpert
“The 2024 Budget’s emphasis on revising the personal income tax structure and increasing the standard deduction for salaried individuals from Rs 50,000 to Rs 75,000 is a welcome move. This initiative, coupled with the encouragement to states to lower stamp duty and the proposal for reduced stamp duty for women purchasing property, will make home ownership, particularly for first-time buyers, more accessible and financially viable. Additionally, the focus on affordable housing, with a substantial Rs 10 lakh crore investment under the PM Awas Yojana-Urban, aims to address the housing needs of 1 crore urban poor, signaling robust support for residential real estate. The emphasis on industrial parks and infrastructure development will further bolster economic growth, paving the way for a dynamic real estate market.”
Mr. SARVESHAA SB, Chairman and Managing Director, BHADRA Group
“Today’s Union Budget announcement aligns with BHADRA Group’s mission of delivering high quality living spaces. This forward-looking plan prioritizes housing, urban development, and infrastructure, creating a dynamic environment for strategic growth and innovation. The “Cities as Growth Hubs” initiative, with its focus on economic and transit planning, presents exciting opportunities for real estate development. BHADRA Group’s expertise in building sustainable and well-connected communities positions them to significantly contribute to this vision.
The focus on PM Awas Yojana Urban 2.0, affordable housing loan subsidies, and transparent rental markets promises significant demand boost and investment in the housing sector. The reforms aimed at moderating stamp duty rates, particularly for properties purchased by women, are a welcome step towards making property ownership more accessible for them. Furthermore, the budget also invests heavily in infrastructure development (₹11.11 lakh crore) and launches Phase-IV of PMGSY to connect rural areas. This is likely to augur well for the realty sector as well.”
Mr. NS Rao, Group CFO, Ramky Group
“We applaud the Finance Ministry and the Indian government’s enduring dedication to economic progress. Their decision to retain the Rs 11.11 lakh crore capex outlay for infrastructure over five years, alongside fiscal support, is warmly welcomed. This commitment, along with attracting private investment through viability gap funding and a market-driven financing framework, promises a bright future for infrastructure. Furthermore, the allocation of 3.4% of GDP to infrastructure, along with Rs 1.5 lakh crore in long-term, interest-free loans to states, empowers the industry to innovate and deliver cutting-edge projects that drive economic growth and job creation. The significant aspect is the emphasis on plug-and-play industrial parks, water, sewage and municipal solid waste treatment, paving way for SDG fulfillment and circular economy.“
Mr. Y. R. Nagaraja, Managing Director of Ramky Infrastructure Limited
“Ramky Infrastructure Limited commends the Government of India’s vision for propelling overall economic growth. The Viksit Bharat mission’s nine priorities unveil a wealth of opportunities for both public and private entities through enabling policies and fiscal support.
One of the most important aspects of the infrastructure industry is the government’s unwavering commitment to skill development and the substantial capital expenditure outlay of ₹11.11 lakh crore designated for infrastructure developments. The sanctioning of twelve “plug and play” industrial parks, fully equipped with necessary resources promises to significantly enhance the nation’s manufacturing capabilities and generate a surge in employment opportunities. The roadmap for developing similar parks in 100 cities indicates a decentralised approach to industrial development, one that actively incorporates private-sector partnerships.
Furthermore, we applaud schemes like PM Awas Yojana, which addresses housing needs in both urban and rural areas. The government’s commendable allocation of Rs 2.66 lakh crore for rural development will facilitate the provision of essential infrastructure. In conclusion, Ramky Infrastructure Limited firmly believes the 2024 union budget paves the way for inclusive and sustainable growth across the nation”.
Mr. Arshdeep Sethi, President, RMZ Real Estate
‘The Union Budget 2024 focuses heavily on boosting housing and infrastructure, promising positive impacts. One of the main highlights is the allocation of Rs 11.11 lakh crore for capital expenditure, which equals 3.4% of the GDP. This substantial investment aims to cultivate a conducive environment for developers, investors, and infrastructure firms to thrive and innovate.
The transit-oriented development plans for 14 large cities, promotes the development of mixed-use properties around transit hubs, leading to increased real estate activity and better urban planning. Additionally, Investment-ready “plug and play” industrial parks and dormitory-style housing for industrial workers will attract industrial investments leading to increased demand for industrial real estate.
Streamlining FDI regulations to promote international partnerships is also set to boost economic prospects and drive more institutional investment in the real asset sector. The government’s focus on affordable housing and increased funding in this sector will improve the urban infrastructure, thereby attracting more investments into the urban real estate market. These initiatives collectively position the real estate sector to drive sustainable growth and provide long-term benefits to stakeholders, ensuring a resilient future for India’s housing and infrastructure sectors.’
Mr. Akshat Seth, Managing Director & CEO at HIL Ltd
“We welcome the government’s strong commitment to inclusive development in this year’s budget with the vision of a “Viksit Bharat”. The focus on nine priority areas and employment will entail sustained efforts to generate ample opportunities for all. The government’s decision to maintain the interim capital expenditure target of ₹11.11 lakh crore — the highest allocation ever at 3.4% of GDP — reflects the sustained reliance on infrastructure development to drive economic growth. Additionally, the allocation of ₹2.66 lakh crore for rural development, including rural infrastructure projects, will play a remarkable role in transforming the rural economy. The women-first initiatives for enhancing women’s participation in the labour force are also a welcome move. This focus on innovation, infrastructure, and inclusive development will ensure sustainable progress across the nation and also ensure that the impact reaches the common man.”
Mr Neeraj Akhoury, President, Cement Manufacturers’ Association (CMA) and Managing Director, Shree Cement Limited
“Against the backdrop of global uncertainties and inflation, the Union Budget 2024-25 is transformative and forward looking with an eye on fiscal consolidation. The announcement of INR 11 lakh crore capital expenditure signifies the Government’s commitment to modernising India’s infrastructure through various significant projects and allocations, which will undoubtedly drive demand for Cement and other building materials. These initiatives collectively illustrate the Budget’s comprehensive and strategic approach to bolstering India’s infrastructure across various sectors.
Additionally, the Cement industry is in alignment with the Government of India’s net zero goals. The transition roadmap for ‘hard to abate’ industries to move from the ‘Perform, Achieve and Trade’ mode to the ‘Indian Carbon Market’ mode is a welcome step. The roadmap will further boost India’s energy infrastructure and encourage renewable energy adoption. Overall, this Budget is a win-win for both the economy and the environment, and the Cement industry is poised to play a pivotal role in the Nation’s development journey.”
Mr Parth Jindal, Vice President, Cement Manufacturers’ Association (CMA) and Managing Director, JSW Cement Limited
“The Budget indeed paves the way for a robust and resilient economy, fostering growth that is both equitable and sustainable. Its focus on employment, skilling, and urban development is a significant step towards inclusive growth. The Prime Minister’s package, with its emphasis on skilling and employment linked incentives, will not only further enhance workforce capabilities but also generate new job opportunities within the Cement sector. As the Cement Industry is transitioning and adapting to newer technologies, India needs a workforce that is skilled and equipped. The allocation of INR 1.48 lakh crore for education, employment, and skilling initiatives stands to have a huge impact on creating a skilled workforce that can contribute effectively to the Cement Industry. The Cement Industry is a major contributor to employment generation in India. The Cement Industry welcomes the Budget’s strategic initiatives and is committed to supporting these efforts through innovation and sustainable practices.”
Mr. Ashok Singh Jaunapuria MD and CEO of SS Group
“We applaud the visionary initiatives outlined in the 2024 budget to transform India’s housing and urban development landscape. The introduction of the Pradhan Mantri Awas Yojana-Urban 2.0, which pledges to construct 3 crores more homes and allot Rs 10 lakh crores over the course of the next five years, represents a significant attempt to meet the housing demands of middle-class families as well as the urban poor. This initiative not only promises to provide affordable housing but also injects momentum into the cement and construction sectors, fostering economic growth and employment opportunities. Solar energy adoption under PM Suryaghar Muft Bijli Yojana underscores India’s commitment to a greener and more inclusive future. We are eager to contribute to these transformative efforts, building communities that prioritize affordability, sustainability, and the well-being of all residents.”
Mr. Ajay Pareek, Chief Business Officer, SMFG India Credit, (formerly Fullerton India)
“The government has presented robust initiatives as part of the FY25 Union Budget to enhance credit access and foster growth in the vital MSME sector. The introduction of a credit guarantee scheme for MSMEs in manufacturing, aimed at facilitating term loans for machinery and equipment purchases, is transformative since it will provide access to credit to a wider target group thereby accelerating economic growth. This, coupled with a new digital footprint-based assessment model for MSMEs, will revolutionize credit accessibility which are lacking formal accounting systems.
The increase in the MUDRA loan limit from Rs 10 lakh to Rs 20 lakh is a significant boost for small businesses. The reduced turnover threshold for mandatory onboarding on the TReDS platform will further unlock working capital and drive MSME growth.
As we move towards a $5 trillion economy, these measures will empower MSMEs to compete globally and contribute substantially to economic development. We at SMFG India Credit remain committed to supporting these enterprises.”
